ONS reports third consecutive monthly fall in output

New data published from the Office for National Statistics (ONS) showed that Construction Output decreased by 1.7% in February – the largest fall in monthly growth since October 2019 and there was also a 5.6% fall in private housing repair and maintenance in the three months to February 2020, the largest fall in this series since October 2012.

The ONS data reveals that this is the first time the industry has experienced three consecutive monthly falls since March 2018.  It means the industry will not have a cushion to fall back as the impact of the pandemic really bites. Construction is more affected than many other industries as most workers are unable to work from home.

“These figures are a worrying sign of sluggishness in the construction sector, which was already evident before the coronavirus outbreak,”  said Clive Docwra, Managing Director of leading construction consulting and design agency McBains,

“The drop in private new housing, which fell 7.7% on the previous month, is a cause for concern as it is the second largest fall since monthly records began in 2010. The bad weather in February was clearly a factor, but the more ominous sign on the horizon is the impact of Covid-19.

“On the back of these disappointing figures, the industry is bracing itself for a severe downturn over the next few months, with Covid-19 already resulting in empty sites and a significant proportion of planned investment on hold.

Brian Berry, Chief Executive of the Federation of Master Builders (FMB), said: “Repair and maintenance plummeted during a wet winter, and builders have not had the opportunity to revive workloads due to the coronavirus lockdown. They have been suffering due to conditions outside of their control, and further Government help is needed to get this important sector through the crisis.

“The Government must ramp up its support for builders by allowing Directors of small Limited companies to use their dividend payments in their Job Retention Scheme claims. A cash grant mechanism to get builders through this tough time should also be developed, and all financial schemes must come on line as soon as possible.”